The US company’s share of the world’s largest EV market has dropped to 4.3 per cent from more than 16 per cent in 2022.

Tesla will make a lower-cost version of its best-selling Model Y in Shanghai, three people with knowledge of the matter said, aiming to regain ground lost during a price war in its second-largest market.

In a bid to regain market share in China, Tesla (NASDAQ:TSLA) is reportedly developing a lower-cost version of its best-selling Model Y in Shanghai. Citing people with knowledge of the matter, Reuters reported that the new model will be more compact and at least 20% cheaper to manufacture than the refreshed Model Y,

Tesla has lost share to Chinese competitors, while Elon Musk’s political activities have led to steep declines in Tesla sales in Europe.

The stripped-down SUV is aimed at recovering market share from Chinese makers offering less-expensive models.

Tesla plans to produce a more affordable version of its Model Y in Shanghai. The new model will be built using existing production lines and is set for mass production by 2026. This initiative aims to regain lost market share in China.

Tesla has plans to produce a low-cost version of its best-selling Model Y to boost sluggish sales in China, according to a report. The car will cost at least 20% less to produce than the version launched last year,

Tesla sold more than 657,000 vehicles in China, which was a new record for the company. However, sales have slowed in the first two months of 2025, and a cheaper Model